On Sunday, the public sector Bank of India announced a 0.75 per cent reduction in the interest rate on external benchmark based products. With this, the bank will now charge interest at 7.25 per cent on the external benchmark based loan. The external benchmark lending rate of the bank is linked to the repo rate of the RBI. The central bank announced a drastic reduction of 0.75 per cent in the repo rate on 27 March. Now the repo rate of RBI is 4.40 percent. New rates announced by Bank of India will be effective from April 1

In a statement issued by Bank of India on this matter, it says, "The external benchmark lending rate has been cut by 0.75 percent and it has become 7.25 percent annually." Along with this, we have given the benefit of deduction made by RBI to our home, vehicle loan customers and MSME customers.

For your information, let us tell you that the bank has also announced a reduction in the Marginal Cost of Fund Based Lending Rate (MCLR) from 0.15 percent to 0.25 percent. For one day loan, the bank has announced a reduction of 0.15 percent in the interest rate. At the same time, from one month to one year, the loan has become cheaper by 0.25 percent. The bank's one-year MCLR has become 7.95 percent.

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